The re-sale value of a leasehold property in Whiston is impacted by how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded prior to the 80 year mark. Current legislation enables Whiston qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Whiston with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Whiston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jayden, started to get close to the eighty-year threshold with the lease on his first floor apartment in Whiston. In buying his flat 19 years previously, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Jayden extended the lease at the eleventh hour in June. Jayden and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he not met the deadline, the price would have escalated by a minimum £850.
Mr T Rivera took over the lease of a one bedroom apartment in Whiston in March 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Whiston with a long lease were valued about £250,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 6 June 2095. Considering the 69 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2010 we were phoned by Dr Samuel Parker who, having acquired a garden flat in Whiston in November 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Whiston with a long lease were valued around £285,000. The mid-range ground rent payable was £55 collected annually. The lease finished on 15 October 2106. Having 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.